REG - Ashtead Group PLC - Unaudited results for first quarter ended 31/07/25
Wed 07:00
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RNS Number : 7301X Ashtead Group PLC 03 September 2025
3 September 2025
Unaudited results for the first quarter ended 31 July 2025
First quarter
2025 2024 Growth
$m $m %
Performance(1)
Revenue 2,801 2,754 2%
Rental revenue 2,601 2,541 2%
Adjusted(2) EBITDA 1,276 1,288 -1%
Operating profit 642 688 -7%
Adjusted(2) profit before taxation 552 573 -4%
Profit before taxation 512 544 -6%
Adjusted(2) earnings per share 95.3¢ 97.4¢ -2%
Earnings per share 87.7¢ 92.4¢ -5%
Highlights
· Group rental revenue up 2%; revenue up 2%
· Operating profit of $642m (2024: $688m)
· Adjusted(2) profit before taxation of $552m (2024: $573m)
· Adjusted(2) earnings per share of 95.3¢ (2024: 97.4¢)
· $532m of capital invested in the business (2024: $855m)
· Free cash flow(1) of $514m (2024: $161m)
· $330m spent on share buyback (2024: $nil)
· Net debt to adjusted EBITDA leverage of 1.6 times (2024: 1.7
times)
· Reaffirm guidance for revenue and capex while increasing it for
free cash flow
(1) Throughout this announcement we refer to a number of alternative performance
measures which provide additional useful information. The directors have
adopted these to provide additional information on the underlying trends,
performance and position of the Group. The alternative performance measures
are not defined by IFRS and therefore may not be directly comparable with
other companies' alternative performance measures but are defined and
reconciled in the Glossary of Terms on page 28.
(2) Adjusted results are stated before amortisation and non-recurring costs
associated with the move of the Group's primary listing to the US.
Ashtead's chief executive, Brendan Horgan, commented:
The Group delivered solid first quarter results with revenues, profits and
free cash flow in line with our expectations as we continue to take advantage
of secular tailwinds and the structural progression of our industry. Rental
revenue increased 2.4% as mega project activity gained momentum, and we are
seeing positive leading indicators for local non-residential construction
activity.
Our revenue growth combined with strong margins and disciplined capital
deployment resulted in near record free cash flow in the quarter. In
addition, we were able to complete $330m of share buybacks in the quarter
bringing our total to c. $675m under the current programme, as well as paying
down $91m of long-term borrowings, with leverage of 1.6x. I would like to
thank the team for these results, while leading with our safety-first culture
and Engage for Life programme, which are continuing to drive improvements in
our safety metrics.
We are reaffirming our revenue and capex guidance for the year, while raising
it for free cash flow. Lastly, we continue to progress our relisting on the
NYSE that is currently scheduled for March 2026.
Contacts:
Will Shaw Director of Investor Relations +44 (0)20 7726 9700
Sam Cartwright H/Advisors Maitland +44 (0)20 7379 5151
Brendan Horgan and Alex Pease will hold a conference call for equity analysts
to discuss the results and outlook at 11:30am (6:30am EST) on Wednesday, 3
September 2025. The call will be webcast live via the Company's website at
www.ashtead-group.com (http://www.ashtead-group.com) and a replay will be
available via the website shortly after the call concludes. A copy of this
announcement and the slide presentation used for the call are available for
download on the Company's website. The usual conference call for bondholders
will begin at 3pm (10am EST).
Analysts and bondholders have already been invited to participate in the
analyst and bondholder calls but any eligible person not having received
details should contact the Company's PR advisers, H/Advisors Maitland (Audrey
Da Costa) at +44 (0)20 7379 5151.
Forward-looking statements This announcement contains forward-looking
statements. These have been made by the directors in good faith using
information available up to the date on which they approved this report. The
directors can give no assurance that these expectations will prove to be
correct. Due to the inherent uncertainties, including both business and
economic risk factors underlying such forward-looking statements, actual
results may differ materially from those expressed or implied by these
forward-looking statements. Except as required by law or regulation, the
directors undertake no obligation to update any forward-looking statements
whether as a result of new information, future events or otherwise.
Trading results(1)
Segment
Revenue EBITDA(2,3) Profit(2,3)
2025 2024 2025 2024 2025 2024
$m $m $m $m $m $m
North America General Tool 1,648.9 1,661.1 870.7 900.2 519.5 561.3
North America Specialty 909.3 855.3 435.9 410.5 301.2 279.5
UK 242.7 237.3 61.4 63.9 16.2 22.1
Central costs - - (92.1) (86.9) (154.3) (145.9)
2,800.9 2,753.7 1,275.9 1,287.7 682.6 717.0
Financing costs (130.2) (143.9)
Adjusted profit before tax 552.4 573.1
Non-recurring costs (12.7) -
Amortisation (28.1) (28.7)
Profit before taxation 511.6 544.4
Taxation charge (136.1) (140.9)
Profit attributable to equity holders of the Company 375.5 403.5
Margins
North America General Tool 52.8% 54.2% 31.5% 33.8%
North America Specialty 47.9% 48.0% 33.1% 32.7%
UK 25.3% 26.9% 6.7% 9.3%
Group 45.6% 46.8% 24.4% 26.0%
(1) During the prior financial year, the Group reassessed the basis of its
segment information to report its results reflecting North America General
Tool, North America Specialty and UK segments, which we believe reflects
better the basis upon which we review the performance of the business
internally and aligns with the basis of our strategic growth plan, Sunbelt
4.0. Prior year comparative information has been restated to reflect these
segments.
(2) Segment performance is measured internally excluding central costs which
support the business as a whole. Furthermore, the Group manages debt,
including lease liabilities, centrally and therefore segment profit measures
are presented before the application of lease accounting adjustments in
accordance with IFRS 16 Leases but instead reflect the cash cost incurred in
the period. The impact of lease accounting adjustments are included within
the central costs line item above.
(3) Segment results presented are adjusted EBITDA and adjusted operating
profit. A reconciliation of adjusted measures to statutory measures is
provided in the Glossary of Terms on page 28.
North America General Tool
In the North American General Tool business, rental revenue of $1,535m (2024:
$1,524m) was 1% higher than the prior period, driven by volume growth.
Organic performance (same-store and greenfields) was flat, while bolt-ons
since 1 May 2024 contributed 1% of rental revenue growth. North American
General Tool total revenue, including new and used equipment, merchandise and
consumable sales, was $1,649m (2024: $1,661m). As expected, this reflects a
lower level of used equipment sales than the comparable period last year
($71m; 2024: $94m).
We continued to focus on the cost base which contributed to North America
General Tool EBITDA of $871m (2024: $900m) and an EBITDA margin of 52.8%
(2024: 54.2%). The margins reflect higher costs associated with internal
repairs and repositioning of rental fleet to drive utilisation improvements.
As anticipated, lower used equipment sales and second-hand values resulted in
lower gains on sale. After higher depreciation on a larger fleet, this
contributed to adjusted operating profit decreasing by 7% to $520m
(2024: $561m) with a margin of 31.5% (2024: 33.8%).
North America Specialty
In the North American Specialty business, rental revenue of $854m (2024:
$813m) was 5% higher than the prior year, driven by both volume and rate
improvement, demonstrating the benefits of our strategy of growing our
Specialty businesses. North American Specialty total revenue, including new
and used equipment, merchandise and consumable sales, was $909m
(2024: $855m).
This performance combined with our focus on the cost base contributed to North
American Specialty EBITDA of $436m (2024: $410m) and an EBITDA margin of 47.9%
(2024: 48.0%). After higher depreciation on a larger fleet, this
contributed to adjusted operating profit increasing by 8% to $301m
(2024: $279m) with a margin of 33.1% (2024: 32.7%).
UK
The UK business generated rental revenue of $212m, up 4% on the prior year
(2024: $204m). Rental revenue growth has benefitted from favourable foreign
exchange movements, with rental revenue in local currency 2% lower than the
prior year. Total revenue increased 2% to $243m (2024: $237m).
In the UK, the focus remains on delivering operational efficiency and
long-term, sustainable returns in the business, while rental rate achievement
remains an area of focus. The UK generated EBITDA of $61m (2024: $64m) at a
margin of 25.3% (2024: 26.9%) and adjusted operating profit of $16m (2024:
$22m) at a margin of 6.7% (2024: 9.3%).
Group
Group revenue was $2,801m (2024: $2,754m) during the quarter. This revenue
and our focus on the cost base, but with lower used equipment sales, resulted
in adjusted EBITDA decreasing 1% to $1,276m (2024: $1,288m). We invested in
the infrastructure of the business during Sunbelt 3.0 to support the growth of
the business now and into the future. Our intention is to leverage this
infrastructure during Sunbelt 4.0 as we look to improve operating
performance.
Adjusted operating profit decreased 5% to $683m (2024: $717m), reflecting a
depreciation charge which was 4% higher than the prior year. The higher
increase in the depreciation charge relative to revenue growth reflects the
ongoing impact of life cycle fleet inflation, contributing to the decline in
adjusted operating profit.
After lower net financing costs of $130m (2024: $144m), reflecting lower
average debt levels, Group adjusted profit before tax was $552m (2024:
$573m). After a tax charge of 26% (2024: 26%) of the adjusted pre-tax
profit, adjusted earnings per share were 95.3ȼ (2024: 97.4ȼ).
Statutory profit before tax was $512m (2024: $544m). This is after
non-recurring costs of $13m (2024: $nil) associated with the move of the
Group's primary listing to the US and amortisation of $28m (2024: $29m).
Included within the total tax charge is a tax credit of $8m (2024: $7m) which
relates to the amortisation of intangibles and non-recurring costs. As a
result, basic earnings per share were 87.7¢ (2024: 92.4¢).
Capital expenditure and acquisitions
Capital expenditure for the quarter was $532m gross and $416m net of disposal
proceeds (2024: $855m gross and $722m net). As a result, the Group's rental
fleet at 31 July 2025 at cost was $19bn (2024: $18bn) and our average fleet
age was 50 months (2024: 46 months) on an original cost basis.
We invested $20m (2024: $53m) in two bolt-on acquisitions during the period,
as we continue to both expand our footprint and diversify our end markets.
Further details are provided in Note 14.
Return on Investment
The Group return on investment was 14% (2024: 16%). For North America
General Tool, return on investment (excluding goodwill and intangible assets)
for the 12 months to 31 July 2025 was 20% (2024: 24%), while for North
America Specialty it was 31% (2024: 29%). The reduction in North America
General Tool return on investment reflects principally the impact of lower
average utilisation of a larger fleet. In the UK, return on investment
(excluding goodwill and intangible assets) was 6% (2024: 7%). Return on
investment excludes the impact of IFRS 16.
Cash flow and net debt
The Group generated free cash flow of $514m (2024: $161m) during the quarter,
which is after capital expenditure payments of $506m (2024: $933m). In
December 2024, the Group launched a share buyback programme of up to $1.5bn
over 18 months. During the quarter, we spent $330m (2024: $nil) on share
buybacks under this programme.
Net debt at 31 July 2025 was $10,268m (2024: $10,761m). Excluding the effect
of IFRS 16, net debt at 31 July 2025 was $7,425m (2024: $8,033m), while the
ratio of net debt to adjusted EBITDA was 1.6 times (2024: 1.7 times) on a
constant currency basis. The Group's target range for net debt to adjusted
EBITDA is 1.0 to 2.0 times, excluding the impact of IFRS 16. Including the
effect of IFRS 16, the ratio of net debt to adjusted EBITDA was 2.0 times
(2024: 2.2 times) on a constant currency basis.
At 31 July 2025, availability under the senior secured debt facility was
$3,702m with an additional $6,325m of suppressed availability - substantially
above the $475m level at which the Group's entire debt package is covenant
free.
The Group's debt facilities are committed for an average of five years at a
weighted average cost of 5%.
Capital allocation
The Group remains disciplined in its approach to allocation of capital with
the overriding objective being to enhance shareholder value.
Our capital allocation framework remains unchanged and prioritises:
· organic fleet growth;
- same-stores;
- greenfields;
· bolt-on acquisitions; and
· a progressive dividend with consideration to both profitability and
cash generation that is sustainable through the cycle.
Additionally, we consider further returns to shareholders. In this regard,
we assess continuously our medium-term plans which take account of investment
in the business, growth prospects, cash generation, net debt and leverage.
As we execute on Sunbelt 4.0, we expect a number of years of strong earnings
and free cash flow generation. Given this outlook, we have the opportunity
to enhance returns to shareholders, while maintaining leverage towards the
middle of our target range of 1.0 to 2.0 times net debt to adjusted EBITDA
(excluding the IFRS 16).
Guidance
Set out below is our guidance for 2025/26:
Initial guidance Current guidance
Rental revenue growth 0% - 4% 0% - 4%
Capital expenditure (gross)(1) $1.8bn - $2.2bn $1.8bn - $2.2bn
Free cash flow(1,2) $2.0bn - $2.3bn $2.2bn - $2.5bn
( )
(1) Stated at C$1=$0.69 and £1=$1.26.
(2) Increase in free cash flow guidance reflects recent changes in US tax
legislation.
CONSOLIDATED INCOME STATEMENT FOR THE THREE MONTHS ENDED 31 JULY 2025
Unaudited
Three months to
31 July
2025 2024
$m $m
Revenue
Rental revenue 2,600.8 2,540.5
Sale of new equipment, merchandise and consumables 97.3 91.6
Sale of used rental equipment 102.8 121.6
2,800.9 2,753.7
Operating costs
Staff costs (655.5) (633.3)
Other operating costs (792.0) (731.8)
Used rental equipment sold (90.2) (100.9)
(1,537.7) (1,466.0)
EBITDA* 1,263.2 1,287.7
Depreciation (593.3) (570.7)
Amortisation of intangibles (28.1) (28.7)
Operating profit 641.8 688.3
Interest income 1.6 -
Interest expense (131.8) (143.9)
Profit on ordinary activities before taxation 511.6 544.4
Taxation (136.1) (140.9)
Profit attributable to equity holders of the Company 375.5 403.5
Basic earnings per share 87.7¢ 92.4¢
Diluted earnings per share 87.5¢ 91.9¢
* EBITDA is presented here as an alternative performance measure as it is
commonly used by investors and lenders. This and other adjusted alternative
performance measures are detailed in the Glossary of Terms on page 28.
All revenue and profit is generated from continuing operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED 31 JULY 2025
Unaudited
Three months to
31 July
2025 2024
$m $m
Profit attributable to equity holders of the Company for the period 375.5 403.5
Items that will not be reclassified subsequently to profit or loss:
Movement on equity instruments held at fair value - (25.5)
- (25.5)
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences (13.8) 13.8
(13.8) 13.8
Total other comprehensive loss for the period (13.8) (11.7)
Total comprehensive income for the period 361.7 391.8
CONSOLIDATED BALANCE SHEET AT 31 JULY 2025
Unaudited Audited
31 July 30 April
2025 2024 2025
$m $m $m
Current assets
Inventories 171.8 178.1 147.2
Trade and other receivables 2,044.2 2,015.5 1,831.1
Current tax asset 11.0 5.9 23.1
Cash and cash equivalents 22.9 17.0 21.0
2,249.9 2,216.5 2,022.4
Non-current assets
Property, plant and equipment
- rental equipment 11,182.9 11,667.1 11,312.1
- other assets 1,946.5 1,854.4 1,919.2
13,129.4 13,521.5 13,231.3
Right-of-use assets 2,532.0 2,498.0 2,523.1
Goodwill 3,291.7 3,245.2 3,276.7
Other intangible assets 371.2 457.2 398.0
Other non-current assets 236.7 173.2 240.2
Current tax asset - 45.7 -
19,561.0 19,940.8 19,669.3
Total assets 21,810.9 22,157.3 21,691.7
Current liabilities
Trade and other payables 1,217.6 1,442.3 1,195.0
Current tax liability 97.6 118.0 8.7
Lease liabilities 303.2 284.0 298.8
Provisions 63.6 43.6 60.8
1,682.0 1,887.9 1,563.3
Non-current liabilities
Lease liabilities 2,574.7 2,486.0 2,553.3
Long-term borrowings 7,412.6 8,008.0 7,500.1
Provisions 105.0 76.9 102.0
Deferred tax liabilities 2,269.3 2,241.5 2,239.8
Other non-current liabilities 78.8 61.6 64.6
Net defined benefit pension plan liability 0.5 0.4 0.5
12,440.9 12,874.4 12,460.3
Total liabilities 14,122.9 14,762.3 14,023.6
Equity
Share capital 81.8 81.8 81.8
Share premium account 6.5 6.5 6.5
Capital redemption reserve 20.0 20.0 20.0
Own shares held by the Company (1,502.3) (818.7) (1,170.7)
Own shares held by the ESOT (23.4) (35.0) (35.0)
Cumulative foreign exchange translation differences (222.5) (249.7) (208.7)
Retained reserves 9,327.9 8,390.1 8,974.2
Equity attributable to equity holders of the Company 7,688.0 7,395.0 7,668.1
Total liabilities and equity 21,810.9 22,157.3 21,691.7
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE THREE MONTHS ENDED 31 JULY 2025
Own Own Cumulative
shares shares foreign
Share Capital held by held exchange
Share premium redemption the by translation Retained
the ESOT
capital account reserve Company differences reserves Total
$m $m $m $m $m $m $m $m
Unaudited
At 1 May 2024 81.8 6.5 20.0 (818.7) (43.5) (263.5) 8,102.0 7,084.6
Profit for the period - - - - - - 403.5 403.5
Other comprehensive income:
Foreign currency translation
differences - - - - - 13.8 - 13.8
Movement on equity
instruments held at fair value - - - - - - (25.5) (25.5)
Total comprehensive income
for the period - - - - - 13.8 378.0 391.8
Own shares purchased
by the ESOT - - - - (84.6) - - (84.6)
Share-based payments - - - - 93.1 - (86.6) 6.5
Tax on share-based payments - - - - - - (3.3) (3.3)
At 31 July 2024 81.8 6.5 20.0 (818.7) (35.0) (249.7) 8,390.1 7,395.0
Profit for the period - - - - - - 1,107.0 1,107.0
Other comprehensive income:
Foreign currency translation
differences - - - - - 41.0 - 41.0
Loss on cash flow hedge - - - - - - 0.3 0.3
Tax on movement on equity
instruments held at fair value - - - - - - 0.9 0.9
Total comprehensive income
for the period - - - - - 41.0 1,108.2 1,149.2
Dividends paid - - - - - - (546.6) (546.6)
Own shares purchased
by the ESOT - - - - (0.9) - - (0.9)
Own shares purchased
by the Company - - - (352.0) - - - (352.0)
Share-based payments - - - - 0.9 - 21.3 22.2
Tax on share-based payments - - - - - - 1.2 1.2
At 30 April 2025 81.8 6.5 20.0 (1,170.7) (35.0) (208.7) 8,974.2 7,668.1
Profit for the period - - - - - - 375.5 375.5
Other comprehensive income:
Foreign currency translation
differences - - - - - (13.8) - (13.8)
Total comprehensive income
for the period - - - - - (13.8) 375.5 361.7
Own shares purchased
by the ESOT - - - - (18.5) - - (18.5)
Own shares purchased
by the Company - - - (331.6) - - - (331.6)
Share-based payments - - - - 30.1 - (21.9) 8.2
Tax on share-based payments - - - - - - 0.1 0.1
At 31 July 2025 81.8 6.5 20.0 (1,502.3) (23.4) (222.5) 9,327.9 7,688.0
CONSOLIDATED CASH FLOW STATEMENT
FOR THE THREE MONTHS ENDED 31 JULY 2025
Unaudited
2025 2024
$m $m
Cash flows from operating activities
Cash generated from operations before
changes in rental equipment 1,001.2 1,110.1
Payments for rental property, plant and equipment (394.2) (794.8)
Proceeds from disposal of rental property, plant and equipment 91.4 93.2
Cash generated from operations 698.4 408.5
Financing costs paid (101.8) (114.0)
Tax received/(paid) 0.9 (6.6)
Net cash generated from operating activities 597.5 287.9
Cash flows from investing activities
Acquisition of businesses (20.5) (58.8)
Payments for non-rental property, plant and equipment (112.2) (138.1)
Proceeds from disposal of non-rental property, plant and equipment 13.4 11.3
Net cash used in investing activities (119.3) (185.6)
Cash flows from financing activities
Drawdown of loans 290.5 238.6
Redemption of loans (382.0) (237.2)
Repayment of principal under lease liabilities (36.6) (35.2)
Purchase of own shares by the ESOT (18.4) (72.5)
Purchase of own shares by the Company (329.8) -
Net cash used in financing activities (476.3) (106.3)
Increase/(decrease) in cash and cash equivalents 1.9 (4.0)
Opening cash and cash equivalents 21.0 20.8
Effect of exchange rate differences - 0.2
Closing cash and cash equivalents 22.9 17.0
Reconciliation of net cash flows to net debt
(Increase)/decrease in cash and cash equivalents in the period (1.9) 4.0
Decrease in debt through cash flow (128.1) (33.8)
Change in net debt from cash flows (130.0) (29.8)
Exchange differences (0.1) 10.7
Debt acquired 3.7 18.6
Deferred costs of debt raising 2.6 2.4
New lease liabilities 60.2 104.2
(Decrease)/increase in net debt in the period (63.6) 106.1
Net debt at 1 May 10,331.2 10,654.9
Net debt at 31 July 10,267.6 10,761.0
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. General information
Ashtead Group plc ('the Company') is a company incorporated and domiciled in
England and Wales and listed on the London Stock Exchange. The condensed
consolidated interim financial statements as at, and for the three months
ended 31 July 2025, comprise the Company and its subsidiaries ('the Group')
and are presented in US dollars.
The condensed consolidated interim financial statements for the three months
ended 31 July 2025 were approved by the directors on 2 September 2025.
The condensed consolidated interim financial statements do not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006. The
statutory accounts for the year ended 30 April 2025 were approved by the
directors on 16 June 2025 and have been mailed to shareholders and filed with
the Registrar of Companies. The auditor's report on those accounts was
unqualified, did not include a reference to any matter by way of emphasis and
did not contain a statement under Section 498(2) or (3) of the Companies Act
2006.
Details of principal risks and uncertainties are given in the Review of
Balance Sheet and Cash Flow accompanying these condensed consolidated interim
financial statements.
2. Basis of preparation
The condensed consolidated interim financial statements for the three months
ended 31 July 2025 have been prepared in accordance with relevant UK-adopted
International Accounting Standards ('IFRS'), including the Disclosure Guidance
and Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority and the accounting policies set out in the Group's Annual Report
& Accounts for the year ended 30 April 2025.
In preparing the financial statements, the exchange rates used in respect of
the pound sterling (£) and Canadian dollar (C$) are:
Pound sterling Canadian dollar
2025 2024 2025 2024
Average for the three months ended 31 July 1.35 1.27 0.73 0.73
At 30 April 1.34 1.25 0.72 0.73
At 31 July 1.32 1.28 0.72 0.72
The directors have adopted various alternative performance measures to provide
additional useful information on the underlying trends, performance and
position of the Group. The alternative performance measures are not defined
by IFRS and therefore may not be directly comparable with other companies'
alternative performance measures but are defined within the Glossary of Terms
on page 28.
The condensed consolidated interim financial statements have been prepared on
the going concern basis. The Group's internal budgets and forecasts of
future performance, available financing facilities and facility headroom (see
Note 11), provide a reasonable expectation that the Group has adequate
resources to continue in operation for the foreseeable future and consequently
the going concern basis continues to be appropriate in preparing the financial
statements.
3. Segmental analysis
The Group's externally reportable segments reflect the internal reporting
structure of the Group, which is the basis on which resource allocation
decisions are made by management in the pursuit of strategic objectives.
During the prior financial year, the Group reassessed the basis of its
segmental information considering recent organisational changes. The Group
operates under two primary geographic regions reflecting its North American
activities and assets, and its UK activities and assets. The North American
business is further split by General Tool and Specialty, reflecting the nature
of its products and services and the management structure of the Group. As
such, the Group identified its reportable operating segments as North America
- General Tool, North America - Specialty and UK which we believe reflects
better the basis upon which we review the performance of the business
internally and aligns with the basis of our strategic growth plan, Sunbelt
4.0.
The Group manages debt (including lease liabilities) and taxation centrally,
rather than by business unit. Accordingly, segmental results are stated
excluding the impact of IFRS 16 lease accounting. Furthermore, segment
results are stated before interest and taxation which are reported as central
Group items. This is consistent with the way the chief executive reviews the
business.
Segmental information for the three months ended 31 July 2024 has been
restated to reflect these updated segments.
Three months to 31 July 2025 (unaudited)
North America
General Tool Central costs
Specialty UK Group
$m $m $m $m $m
Revenue
Rental revenue 1,535.2 853.6 212.0 - 2,600.8
Sale of new equipment, merchandise
and consumables 43.1 32.8 21.4 - 97.3
Sale of used rental equipment 70.6 22.9 9.3 - 102.8
1,648.9 909.3 242.7 - 2,800.9
Adjusted segment EBITDA 870.7 435.9 61.4 (92.1) 1,275.9
Depreciation (351.2) (134.7) (45.2) (62.2) (593.3)
Adjusted operating profit 519.5 301.2 16.2 (154.3) 682.6
Net financing costs (130.2)
Non-recurring costs (12.7)
Amortisation (28.1)
Profit before taxation 511.6
Taxation (136.1)
Profit attributable to equity shareholders 375.5
Three months to 31 July 2024 (unaudited) (restated)
North America
General Tool Central costs
Specialty UK Group
$m $m $m $m $m
Revenue
Rental revenue 1,523.6 812.9 204.0 - 2,540.5
Sale of new equipment, merchandise
and consumables 43.3 26.8 21.5 - 91.6
Sale of used rental equipment 94.2 15.6 11.8 - 121.6
1,661.1 855.3 237.3 - 2,753.7
Adjusted segment EBITDA 900.2 410.5 63.9 (86.9) 1,287.7
Depreciation (338.9) (131.0) (41.8) (59.0) (570.7)
Adjusted operating profit 561.3 279.5 22.1 (145.9) 717.0
Net financing costs (143.9)
Non-recurring costs -
Amortisation (28.7)
Profit before taxation 544.4
Taxation (140.9)
Profit attributable to equity shareholders 403.5
North America
General Tool Central items
Specialty UK Group
$m $m $m $m $m
At 31 July 2025 (unaudited)
Segment assets 10,134.2 3,703.8 1,214.0 6,725.0 21,777.0
Cash 22.9
Taxation assets 11.0
Total assets 21,810.9
At 30 April 2025 (audited)
Segment assets 10,082.5 3,594.9 1,198.3 6,771.9 21,647.6
Cash 21.0
Taxation assets 23.1
Total assets 21,691.7
4. Operating costs and other income
Unaudited
Three months
to 31 July
2025 2024
$m $m
Staff costs:
Salaries 593.6 578.4
Social security costs 48.7 43.0
Other pension costs 13.2 11.9
655.5 633.3
Other operating costs:
Vehicle costs 190.0 180.5
Spares, consumables & external repairs 162.3 137.3
Facility costs 28.9 27.5
Other external charges 410.8 386.5
792.0 731.8
Used rental equipment sold 90.2 100.9
Depreciation and amortisation:
Depreciation of tangible assets 538.8 518.4
Depreciation of right-of-use assets 54.5 52.3
Amortisation of intangibles 28.1 28.7
621.4 599.4
2,159.1 2,065.4
5. Net financing costs
Unaudited
Three months
to 31 July
2025 2024
$m $m
Interest income:
Other interest 1.6 -
1.6 -
Interest expense:
Bank interest payable 19.9 34.8
Interest payable on senior notes 69.9 69.9
Interest payable on lease liabilities 38.2 35.5
Non-cash unwind of discount on liabilities 1.2 1.3
Amortisation of deferred debt raising costs 2.6 2.4
131.8 143.9
6. Taxation
The tax charge for the period has been determined by applying the expected
effective tax rates in each jurisdiction for the year as a whole, based on the
tax rates in force as at 31 July 2025 of 25% in the US (2024: 25%), 26% in
Canada (2024: 26%) and 25% in the UK (2024: 25%). This results in a blended
effective rate for the Group as a whole of 27% (2024: 26%) for the period.
The tax charge of $136m (2024: $141m) on the profit before taxation of $512m
(2024: $544m) can be explained as follows:
Unaudited
Three months
to 31 July
2025 2024
$m $m
Current tax
- current tax on income for the period 132.9 126.6
- adjustments to prior year (26.7) 1.2
106.2 127.8
Deferred tax
- origination and reversal of temporary differences 2.8 13.1
- adjustments to prior year 27.1 -
29.9 13.1
Tax charge 136.1 140.9
Comprising:
- US 130.2 134.8
- Canada 5.5 4.0
- UK 0.4 2.1
136.1 140.9
On 4 July 2025, Public Law No. 119-21, commonly referred to as the 'One Big
Beautiful Bill Act' ('the Act') was enacted in the United States. The Act,
among other things, permanently reinstated the additional first-year
depreciation allowance for qualified property ('bonus depreciation'),
permanently reinstated the EBITDA approach for calculating the business
interest limitation and the immediate expensing of US research and
experimental expenditures. An estimate of the effects of the legislation has
been recorded in the current quarter leading to a $28m reduction in 2025 April
cash tax. The legislation has no significant impact on our effective rate.
7. Earnings per share
Basic and diluted earnings per share for the three months ended 31 July 2025
have been calculated based on the profit for the relevant period and the
weighted average number of ordinary shares in issue during that period
(excluding shares held by the Company and the ESOT over which dividends have
been waived). Diluted earnings per share is computed using the result for
the relevant period and the diluted number of shares (ignoring any potential
issue of ordinary shares which would be anti-dilutive). These are calculated
as follows:
Unaudited
Three months
to 31 July
2025 2024
Profit for the financial period ($m) 375.5 403.5
Weighted average number of shares (m) - basic 428.3 436.5
- diluted 429.3 438.9
Basic earnings per share 87.7¢ 92.4¢
Diluted earnings per share 87.5¢ 91.9¢
A reconciliation to adjusted earnings per share is included in the Glossary of
Terms on page 28.
8. Property, plant and equipment
2025 2024
Rental Rental
equipment Total equipment Total
Net book value $m $m $m $m
At 1 May 11,312.1 13,231.3 11,450.8 13,248.5
Exchange differences (8.0) (9.5) 16.5 18.8
Reclassifications (4.2) - - -
Additions 419.9 532.1 717.5 855.5
Acquisitions 7.7 8.5 20.1 22.2
Disposals (87.0) (94.2) (95.9) (105.1)
Depreciation (457.6) (538.8) (441.9) (518.4)
At 31 July 11,182.9 13,129.4 11,667.1 13,521.5
9. Right-of-use assets
2025 2024
Property Other Property Other
Net book value leases leases Total leases leases Total
$m $m $m $m $m $m
At 1 May 2,490.7 32.4 2,523.1 2,390.5 35.1 2,425.6
Exchange differences (1.0) (0.3) (1.3) 0.9 0.9 1.8
Additions 39.5 0.2 39.7 76.7 2.5 79.2
Acquisitions 3.7 - 3.7 18.6 - 18.6
Remeasurement 27.1 - 27.1 26.9 - 26.9
Disposals (5.1) (0.7) (5.8) (1.5) (0.3) (1.8)
Depreciation (52.5) (2.0) (54.5) (50.3) (2.0) (52.3)
At 31 July 2,502.4 29.6 2,532.0 2,461.8 36.2 2,498.0
10. Lease liabilities
31 July 30 April
2025 2025
$m $m
Current 303.2 298.8
Non-current 2,574.7 2,553.3
2,877.9 2,852.1
11. Borrowings
31 July 30 April
2025 2025
$m $m
Non-current
First priority senior secured bank debt 1,256.5 1,345.7
1.500% senior notes, due August 2026 549.0 548.7
4.375% senior notes, due August 2027 597.8 597.6
4.000% senior notes, due May 2028 597.2 597.0
4.250% senior notes, due November 2029 596.3 596.1
2.450% senior notes, due August 2031 745.4 745.3
5.500% senior notes, due August 2032 740.2 739.9
5.550% senior notes, due May 2033 744.1 744.0
5.950% senior notes, due October 2033 744.7 744.6
5.800% senior notes, due April 2034 841.4 841.2
7,412.6 7,500.1
The senior secured bank debt is secured by way of fixed and floating charges
over substantially all the Group's property, plant and equipment, inventory
and trade receivables and is committed until November 2029. The senior notes
are guaranteed by Ashtead Group plc and all its principal subsidiary
undertakings.
Our debt facilities are committed for the long term, with an average maturity
of five years and a weighted average interest cost (including non-cash
amortisation of deferred debt raising costs) of 5%.
There is one financial performance covenant under the first priority senior
credit facility. That is the fixed charge ratio (comprising EBITDA before
exceptional items less net capital expenditure paid in cash over the sum of
scheduled debt repayments plus cash interest, cash tax payments and dividends
paid in the last twelve months) which, must be equal to, or greater than, 1.0.
This covenant does not apply when availability exceeds $475m. At 31 July
2025, availability under the senior secured bank facility was $3,702m ($3,616m
at 30 April 2025), with an additional $6,325m of suppressed availability,
meaning that the covenant did not apply at 30 April 2025 and is unlikely to
apply in forthcoming quarters.
Fair value of financial instruments
Financial assets and liabilities are measured in accordance with the fair
value hierarchy and assessed as Level 1, 2 or 3 based on the following
criteria:
- Level 1: fair value measurement based on quoted prices (unadjusted) in active
markets for identical assets or liabilities;
- Level 2: fair value measurements derived from inputs other than quoted prices
that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices); and
- Level 3: fair value measurements derived from valuation techniques that
include inputs for the asset or liability that are not based on observable
market data.
Fair value of derivative financial instruments
At 31 July 2025, the Group had no derivative financial instruments. The
embedded prepayment options included within the senior notes are either
closely related to the host debt contract or immaterial and hence, are not
accounted for separately. These loan notes are carried at amortised cost.
Fair value of non-derivative financial assets and liabilities
The table below provides a comparison, by category of the carrying amounts and
the fair values of the Group's non-derivative financial assets and
liabilities.
At 31 July 2025 At 30 April 2025
Book value Fair Book value Fair
value value
$m $m $m $m
Long-term borrowings
- first priority senior secured bank debt Level 1 1,256.5 1,256.5 1,345.7 1,345.7
- 1.500% senior notes Level 1 550.0 532.0 550.0 528.4
- 4.375% senior notes Level 1 600.0 595.3 600.0 594.9
- 4.000% senior notes Level 1 600.0 588.5 600.0 586.1
- 4.250% senior notes Level 1 600.0 585.6 600.0 579.1
- 2.450% senior notes Level 1 750.0 647.6 750.0 636.9
- 5.500% senior notes Level 1 750.0 759.4 750.0 743.8
- 5.550% senior notes Level 1 750.0 757.5 750.0 740.6
- 5.950% senior notes Level 1 750.0 777.5 750.0 757.8
- 5.800% senior notes Level 1 850.0 871.8 850.0 850.4
Total long-term borrowings 7,456.5 7,371.7 7,545.7 7,363.7
Discount on issue of debt (12.1) - (12.4) -
Deferred costs of raising finance (31.8) - (33.2) -
7,412.6 7,371.7 7,500.1 7,363.7
Other financial instruments(1)
Contingent consideration Level 3 26.7 26.7 18.0 18.0
Financial asset investments Level 3 31.5 31.5 31.5 31.5
Cash and cash equivalents Level 1 22.9 22.9 21.0 21.0
( )
(1) The Group's trade and other receivables, trade and other payables,
excluding contingent consideration, and lease liabilities are not shown in the
table above. The carrying amounts of these financial assets and liabilities
approximate their fair values.
Contingent consideration is a Level 3 financial liability. Future
anticipated payments to vendors in respect of contingent consideration are
initially recorded at fair value which is the present value of the expected
cash outflows of the obligations. The obligations are dependent upon the
future financial performance of the businesses acquired. The fair value is
estimated based on internal financial projections prepared in relation to the
acquisition with the contingent consideration discounted to present value
using a discount rate in line with the Group's cost of debt. The movement
since 30 April 2025 can be attributed to $9m of additions through business
acquisitions (see Note 14).
Financial asset investments are measured at fair value and are Level 3
financial assets. These assets are measured at fair value through other
comprehensive income. Their fair values are estimated based on the latest
transaction price and any subsequent investment-specific adjustments.
12. Share capital
Ordinary shares of 10p each:
31 July 31 April 31 July 31 April
2025 2025 2025 2025
Number Number $m $m
Issued and fully paid 451,354,833 451,354,833 81.8 81.8
During the period, the Company purchased 5.4m ordinary shares at a total cost
of $332m (£246m) under the Group's share buyback programme announced by the
Company in December 2024, which are held in treasury. At 31 July 2025, 25.5m
(April 2025: 20.1m) shares were held by the Company ($1,502m; April 2025:
$1,171m) and a further 0.4m (April 2025: 0.5m) shares were held by the
Company's Employee Share Ownership Trust ($23m; April 2025: $35m).
13. Notes to the cash flow statement
a) Cash flow from operating activities
Three months to 31 July
2025 2024
$m $m
Operating profit 641.8 688.3
Depreciation 593.3 570.7
Amortisation 28.1 28.7
EBITDA 1,263.2 1,287.7
Profit on disposal of rental equipment (12.6) (20.7)
Profit on disposal of other property, plant and equipment (6.9) (2.7)
Increase in inventories (24.8) (17.4)
Increase in trade and other receivables (202.6) (145.9)
(Decrease)/Increase in trade and other payables (23.6) 2.0
Exchange differences 0.3 0.6
Other non-cash movement 8.2 6.5
Cash generated from operations before
changes in rental equipment 1,001.2 1,110.1
b) Analysis of net debt
Net debt consists of total borrowings and lease liabilities less cash and cash
equivalents. Borrowings exclude accrued interest. Non-US dollar
denominated balances are translated to US dollars at rates of exchange ruling
at the balance sheet date.
Non-cash movements
1 May Cash Exchange Debt New lease Other 31 July
2025 flow movement acquired liabilities movements 2025
$m $m $m $m $m $m $m
Long-term borrowings 7,500.1 (91.5) 1.4 - - 2.6 7,412.6
Lease liabilities 2,852.1 (36.6) (1.5) 3.7 60.2 - 2,877.9
Total liabilities from
financing activities 10,352.2 (128.1) (0.1) 3.7 60.2 2.6 10,290.5
Cash and cash
equivalents (21.0) (1.9) - - - - (22.9)
Net debt 10,331.2 (130.0) (0.1) 3.7 60.2 2.6 10,267.6
Non-cash movements
1 May Cash Exchange Debt New lease Other 31 July
2024 flow movement acquired liabilities movements 2024
$m $m $m $m $m $m $m
Long-term borrowings 7,995.1 1.4 9.1 - - 2.4 8,008.0
Lease liabilities 2,680.6 (35.2) 1.8 18.6 104.2 - 2,770.0
Total liabilities from
financing activities 10,675.7 (33.8) 10.9 18.6 104.2 2.4 10,778.0
Cash and cash
equivalents (20.8) 4.0 (0.2) - - - (17.0)
Net debt 10,654.9 (29.8) 10.7 18.6 104.2 2.4 10,761.0
Details of the Group's cash and debt are given in Notes 10 and 11 and the
Review of Balance Sheet and Cash Flow accompanying these condensed
consolidated interim financial statements.
c) Acquisitions
Three months
to 31 July
2025 2024
$m $m
Cash consideration paid:
- acquisitions in the period 20.5 53.1
- contingent consideration - 5.7
20.5 58.8
During the period, two businesses were acquired with cash paid of $20m (2024:
$53m), after taking account of net cash acquired of $nil (2024: $nil).
Further details are provided in Note 14.
Contingent consideration of $nil (2024: $6m) was paid relating to prior year
acquisitions.
14. Acquisitions
The Group undertakes bolt-on acquisitions to complement its organic growth
strategy. During the period, the following acquisitions were completed:
i) On 4 June 2025, Sunbelt US acquired the business and assets of MPC Solutions,
LLC ('MPC'). MPC is a specialty business operating in North America.
ii) On 16 July 2025, Sunbelt Canada acquired the business and assets of Location
de Beauce (1983) Inc. ('Beauce'). Beauce is a general tool business operating
in Québec.
The following table sets out the fair value of the identifiable assets and
liabilities acquired by the Group. The fair values have been determined
provisionally at the balance sheet date.
Fair value
to the Group
$m
Net assets acquired
Trade and other receivables 1.1
Property, plant and equipment
- rental equipment 7.7
- other assets 0.8
Right-of-use assets 3.7
Deferred tax (0.1)
Creditors (0.1)
Lease liabilities (3.7)
Intangible assets 1.7
11.1
Consideration:
- cash paid and due to be paid (net of cash acquired) 19.9
- contingent consideration 8.7
28.6
Goodwill 17.5
The goodwill arising can be attributed to the key management personnel and
workforce of the acquired businesses, the benefits through advancing our
clusters and leveraging cross-selling opportunities, and to the synergies and
other benefits the Group expects to derive from the acquisitions. The
synergies and other benefits include elimination of duplicate costs, improving
utilisation of the acquired rental fleet, using the Group's financial strength
to invest in the acquired business and drive improved returns through a
semi-fixed cost base and the application of the Group's proprietary software
to optimise revenue opportunities. $17m of the goodwill is expected to be
deductible for income tax purposes.
The gross value and the fair value of trade receivables at acquisition was
$1m.
Due to the operational integration of acquired businesses post-acquisition, in
particular due to the merger of some stores, the movement of rental equipment
between stores and investment in the rental fleet, it is not practical to
report the revenue and profit of the acquired businesses post-acquisition.
The revenue and operating profit of these acquisitions from 1 May 2025 to
their date of acquisition was not material.
15. Events after the balance sheet date
i) On 13 August 2025, Sunbelt US acquired the business and assets of ARX
Perimeters, LLC ('ARX'). ARX is a specialty business operating in
Illinois.
The initial accounting for this acquisition is incomplete given the proximity
to the year end. Had this acquisition taken place on 1 May 2025, its
contribution to revenue and operating profit would not have been material.
REVIEW OF BALANCE SHEET AND CASH FLOW
Balance sheet
Property, plant and equipment
Capital expenditure in the quarter totalled $532m (2024: $855m) with $420m
invested in the rental fleet (2024: $717m). Expenditure on rental equipment
was 79% of total capital expenditure, where life cycle inflation is c. 20%,
with the balance relating to the delivery vehicle fleet, property improvements
and IT equipment. Capital expenditure by division was:
2025 2024
$m $m
North America General Tool 238.8 494.5
North America Specialty 133.0 160.6
UK 48.1 62.4
Total rental equipment 419.9 717.5
Delivery vehicles, property improvements & IT equipment 112.2 138.0
Total additions 532.1 855.5
The average age of the Group's serialised rental equipment, which constitutes
the substantial majority of our fleet, at 31 July 2025 was 50 months (2024: 46
months) on an original cost basis. The North America General Tool fleet had
an average age of 49 months (2024: 44 months), the North America Specialty
fleet had an average age of 54 months (2024: 49 months) and the UK fleet had
an average age of 54 months (2024: 50 months).
Rental fleet at original cost
31 July 30 April LTM LTM rental LTM dollar
2025 2025 Average Revenue Utilisation
North America General Tool 12,542 12,523 12,460 5,902 47%
North America Specialty 4,553 4,494 4,527 3,353 74%
UK 1,535 1,521 1,496 786 53%
18,630 18,538 18,483 10,041
Dollar utilisation was 47% for North America General Tool (2024: 50%), 74% for
North America Specialty (2024: 73%) and 53% for the UK (2024: 53%). The
decrease in North America General Tool dollar utilisation is due principally
to lower average physical utilisation and fleet inflation.
Trade receivables
Receivable days at 31 July 2025 were 49 days (2024: 49 days). The bad debt
charge for the last twelve months ended 31 July 2025 as a percentage of total
turnover was 0.3% (2024: 0.8%). Trade receivables at 31 July 2025 of $1,678m
(2024: $1,659m) are stated net of allowances for bad debts and credit notes of
$113m (2024: $151m), with the provision representing 6% (2024: 8%) of gross
receivables.
Trade and other payables
Group payable days were 43 days at 31 July 2025 (2024: 47 days) with capital
expenditure related payables totalling $257m (2024: $438m). Payment periods
for purchases other than rental equipment vary between seven and 60 days and
for rental equipment between 30 and 120 days.
Cash flow and net debt
Three months to LTM to Year to
31 July 31 July 30 April
2025 2024 2025 2025
$m $m $m $m
Adjusted EBITDA 1,275.9 1,287.7 5,009.9 5,021.7
Cash inflow from operations before
non-recurring costs and changes in rental equipment 1,016.2 1,110.1 4,859.6 4,953.5
Cash conversion ratio* 79.6% 86.2% 97.0% 98.6%
Rental capital expenditure (394.2) (794.8) (1,850.6) (2,251.2)
Payments for non-rental capital expenditure (112.2) (138.1) (429.7) (455.6)
Rental equipment disposal proceeds 91.4 93.2 459.9 461.7
Other property, plant and equipment disposal proceeds 13.4 11.3 63.3 61.2
Tax received/(paid) (net) 0.9 (6.6) (417.3) (424.8)
Financing costs (101.8) (114.0) (542.7) (554.9)
Free cash flow 513.7 161.1 2,142.5 1,789.9
Non-recurring costs (15.0) - (25.4) (10.4)
Business acquisitions (20.5) (58.8) (109.1) (147.4)
Total cash generated 478.2 102.3 2,008.0 1,632.1
Dividends - - (544.2) (544.2)
Purchase of own shares by the ESOT (18.4) (72.5) (31.4) (85.5)
Purchase of own shares by the Company (329.8) - (671.7) (341.9)
Decrease in net debt due to cash flow 130.0 29.8 760.7 660.5
* Cash inflow from operations before non-recurring costs and changes in rental
equipment as a percentage of adjusted EBITDA.
Cash inflow from operations before non-recurring costs and the net investment
in the rental fleet was $1,016m (2024: $1,110m). The conversion ratio for
the period was 80% (2024: 86%).
Total payments for capital expenditure (rental equipment and other PPE) during
the first quarter were $506m (2024: $933m). Disposal proceeds received
totalled $105m (2024: $105m), giving net payments for capital expenditure of
$401m in the period (2024: $828m). Financing costs paid totalled $102m
(2024: $114m) while tax received (net) were $1m (2024: paid $7m). Financing
costs paid typically differ from the charge in the income statement due to the
timing of interest payments in the period and non-cash interest charges.
Accordingly, the Group generated free cash flow of $514m (2024: $161m) and,
after non-recurring costs of $15m (2024: $nil), acquisition expenditure of
$20m (2024: $59m), a cash flow of $478m (2024: $102m), before returns to
shareholders.
Net debt
31 July 30 April
2025 2024 2025
$m $m $m
First priority senior secured bank debt 1,256.5 1,859.1 1,345.7
1.500% senior notes, due 2026 549.0 548.0 548.7
4.375% senior notes, due 2027 597.8 596.9 597.6
4.000% senior notes, due 2028 597.2 596.2 597.0
4.250% senior notes, due 2029 596.3 595.5 596.1
2.450% senior notes, due 2031 745.4 744.7 745.3
5.500% senior notes, due 2032 740.2 739.1 739.9
5.550% senior notes, due 2033 744.1 743.6 744.0
5.950% senior notes, due 2033 744.7 744.2 744.6
5.800% senior notes, due 2034 841.4 840.7 841.2
Total external borrowings 7,412.6 8,008.0 7,500.1
Lease liabilities 2,877.9 2,770.0 2,852.1
Total gross debt 10,290.5 10,778.0 10,352.2
Cash and cash equivalents (22.9) (17.0) (21.0)
Total net debt 10,267.6 10,761.0 10,331.2
Net debt at 31 July 2025 was $10,268m with the decrease since 30 April 2025
reflecting the cash inflow set out above, partially offset by additional lease
commitments as we continue our greenfield and bolt-on expansion. The Group's
adjusted EBITDA for the twelve months ended 31 July 2025 was $5,010m.
Excluding the impact of IFRS 16, the ratio of net debt to adjusted EBITDA was
1.6 times (2024: 1.7 times) on a constant currency and a reported basis as at
31 July 2025. Including the impact of IFRS 16, the ratio of net debt to
adjusted EBITDA was 2.0 times (2024: 2.2 times) as at 31 July 2025.
Principal risks and uncertainties
Risks and uncertainties in achieving the Group's objectives for the remainder
of the financial year, together with assumptions, estimates, judgements and
critical accounting policies used in preparing financial information remain
broadly unchanged from those detailed in the 2025 Annual Report and Accounts
on pages 32 to 37.
The principal risks and uncertainties facing the Group are:
● economic conditions - in the longer term, there is a link between levels of
economic activity and demand for our services. The most significant end
market which affects our business is construction. The construction industry
is cyclical and typically lags the general economic cycle by between 12 and 24
months.
The economic uncertainties resulting from the impact of pandemics is
considered as part of this risk.
● competition - the already competitive market could become even more
competitive and we could suffer increased competition from large national
competitors or smaller regional or local companies resulting in reduced market
share and lower revenue.
This could negatively affect rental rates and physical utilisation. Continuing
industry consolidation could also have a similar effect.
● cyber security - a cyber-attack or serious uncured failure in our systems
could result in us being unable to deliver service to our customers and / or
the loss of data. In particular, we are heavily dependent on technology for
the smooth running of our business given the large number of both units of
equipment we rent and our customers. As a result, we could suffer
reputational loss, revenue loss and financial penalties.
This is the most significant factor in our business continuity planning.
● health and safety - a failure to comply with laws and regulations governing
health and safety and ensure the highest standards of health and safety across
the Group could result in accidents which may result in injury to or fatality
of an individual, claims against the Group and/or damage to our reputation.
● people and culture - retaining and attracting good people is key to delivering
superior performance and customer service and maintaining and enhancing our
culture.
Excessive staff turnover is likely to impact on our ability to maintain the
appropriate quality of service to our customers and would ultimately impact
our financial performance adversely.
At a leadership level, succession planning is required to ensure the Group can
continue to inspire the right culture, leadership and behaviours and meet its
strategic objectives. Furthermore, it is important that our remuneration
policies reflect the Group's North American focus and enable us to retain and
enhance our strong leadership team.
● environmental - as part of Sunbelt 4.0, the Group has made a long-term
commitment to reduce its Scope 1 and 2 carbon intensity by 50% by 2034,
compared to a baseline of 2024, on a journey to Net Zero by 2050. Failure
to achieve these goals could adversely impact the Group and its
stakeholders.
In terms of the Group's assessment of the broader environmental impacts of our
activities, we also consider the upstream and downstream impacts of our
operations and note that a significant part of our Scope 3 emissions arises
from our rental fleet, which today is reliant on diesel engines. Over time,
'greener' alternatives will become available as technology advances. If we
do not remain at the forefront of technological advances, and invest in the
latest equipment, our rental fleet could become obsolete.
In addition, we need to comply with the numerous laws governing environmental
protection matters. These laws regulate such issues as wastewater, storm
water, solid and hazardous wastes and materials, and air quality. Breaches
potentially create hazards to our employees, damage to our reputation and
expose the Group to, amongst other things, the cost of investigating and
remediating contamination and also fines and penalties for non-compliance.
● laws and regulations - breaches of laws or regulations governing the Group's
activities could result in criminal prosecution, substantial claims and loss
of reputation.
Further details, including actions taken to mitigate these risks, are provided
within the 2025 Annual Report & Accounts.
Our business is subject to significant fluctuations in performance from
quarter to quarter as a result of seasonal effects. Commercial construction
activity tends to increase in the summer and during extended periods of mild
weather and to decrease in the winter and during extended periods of inclement
weather. Furthermore, due to the incidence of public holidays in the US,
Canada and the UK, there are more billing days in the first half of our
financial year than the second half leading to our revenue normally being
higher in the first half. On a quarterly basis, the second quarter is
typically our strongest quarter, followed by the first and then the third and
fourth quarters.
In addition, the current trading and outlook section of the interim statement
provides commentary on market and economic conditions for the remainder of the
year.
OPERATING STATISTICS
Number of rental stores Staff numbers
31 July 30 April 31 July 30 April
2025 2024 2025 2025 2024 2025
North America - General Tool 787 774 781 12,935 13,088 12,695
North America - Specialty 590 579 588 6,564 6,511 6,444
UK 192 190 191 4,354 4,442 4,326
Central - - - 1,529 1,661 1,576
Group 1,569 1,543 1,560 25,382 25,702 25,041
GLOSSARY OF TERMS
The glossary of terms below sets out definitions of terms used throughout this
announcement. Included are a number of alternative performance measures
('APMs') which the directors have adopted in order to provide additional
useful information on the underlying trends, performance and position of the
Group. The directors use these measures, which are common across the
industry, for planning and reporting purposes. These measures are also used
in discussions with the investment analyst community and credit rating
agencies. The APMs are not defined by IFRS and therefore may not be directly
comparable with other companies' APMs and should not be considered superior to
or a substitute for IFRS measures.
Term Closest equivalent statutory measure Definition and purpose
Adjusted EBITDA Operating profit Adjusted EBITDA is operating profit before depreciation, amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
First quarter
2025 2024
$m $m
Operating profit 641.8 688.3
Depreciation 593.3 570.7
Amortisation 28.1 28.7
EBITDA 1,263.2 1,287.7
Non-recurring costs associated with relisting:
- Staff costs 2.2 -
- Other operating costs 10.5 -
Adjusted EBITDA 1,275.9 1,287.7
Adjusted operating profit Operating profit Adjusted operating profit is operating profit before amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
First quarter
2025 2024
$m $m
Operating profit 641.8 688.3
Amortisation 28.1 28.7
Non-recurring costs associated with relisting:
- Staff costs 2.2 -
- Other operating costs 10.5 -
Adjusted operating profit 682.6 717.0
Adjusted profit before tax Profit before tax Adjusted profit before tax is profit before tax, amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
First quarter
2025 2024
$m $m
Profit before tax 511.6 544.4
Amortisation 28.1 28.7
Non-recurring costs associated with relisting:
- Staff costs 2.2 -
- Other operating costs 10.5 -
Adjusted profit before tax 552.4 573.1
Adjusted profit after tax Profit after tax Adjusted profit after tax is profit after tax before amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
First quarter
2025 2024
$m $m
Profit after tax 375.5 403.5
Amortisation 28.1 28.7
Non-recurring costs associated with relisting:
- Staff costs 2.2 -
- Other operating costs 10.5 -
Tax on adjusting items (8.2) (7.2)
Adjusted profit after tax 408.1 425.0
Adjusted earnings per share Earnings per share Adjusted earnings per share is earnings per share before and non-recurring
costs associated with the move of the Group's primary listing to the US.
First quarter
2025 2024
ȼ ȼ
Earnings per share (basic) 87.7 92.4
Amortisation 6.6 6.6
Non-recurring costs associated with relisting:
- Staff costs 0.5 -
- Other operating costs 2.4 -
Tax on adjusting items (1.9) (1.6)
Adjusted earnings per share (basic) 95.3 97.4
Adjusted segment EBITDA Operating profit Adjusted segment EBITDA is operating profit by segment before depreciation,
amortisation and non-recurring costs associated with the move of the Group's
primary listing to the US. Adjusted segment EBITDA is calculated excluding
the impact of
IFRS 16. A reconciliation of adjusted segment EBITDA to operating profit is
shown below:
First quarter
2025 2024
$m $m
Adjusted segment EBITDA
- North America - General Tool 870.7 900.2
- North America - Specialty 435.9 410.5
- UK 61.4 63.9
Impact of IFRS 16 73.0 67.4
Other central costs (165.1) (154.3)
Adjusted EBITDA 1,275.9 1,287.7
Non-recurring costs (12.7) -
EBITDA 1,263.2 1,287.7
Depreciation (593.3) (570.7)
Amortisation (28.1) (28.7)
Operating profit 641.8 688.3
Adjusted segment operating profit Operating profit Adjusted segment operating profit is operating profit by segment before
depreciation, amortisation and non-recurring costs associated with the move of
the Group's primary listing to the US. Adjusted segment EBITDA is calculated
excluding the impact of
IFRS 16. A reconciliation of adjusted segment EBITDA to operating profit is
shown below:
First quarter
2025 2024
$m $m
Adjusted segment operating profit
- North America - General Tool 519.5 561.3
- North America - Specialty 301.2 279.5
- UK 16.2 22.1
Impact of IFRS 16 20.5 17.1
Other central costs (174.8) (163.0)
Adjusted operating profit 682.6 717.0
Non-recurring costs (12.7) -
Amortisation (28.1) (28.7)
Operating profit 641.8 688.3
Free cash flow Net cash generated from operating activities Free cash flow is net cash generated from operating activities adjusted for
non-recurring costs less non-rental net property, plant and equipment
expenditure. Non-rental net property, plant and equipment expenditure
comprises payments for non-rental capital expenditure less disposal proceeds
received in relation to non-rental asset disposals.
2025 2024
$m $m
Net cash generated from operating activities 597.5 287.9
Non-recurring costs 15.0 -
Payments for non-rental property, plant and equipment
(112.2) (138.1)
Proceeds from disposal of non-rental property,
plant and equipment 13.4 11.3
Free cash flow 513.7 161.1
This measure shows the cash retained by the Group prior to non-recurring
costs, discretionary expenditure on acquisitions and returns to
shareholders.
Leverage None Leverage calculated at constant exchange rates uses the period end exchange
rate for the relevant period and is determined as net debt divided by last
12-month ('LTM') adjusted EBITDA.
2025 2024
Excluding IFRS 16 Including IFRS 16 Excluding IFRS 16 Including IFRS 16
Net debt ($m)
As reported and 7,425.3 10,267.6 8,032.5 10,761.0
at constant currency
Adjusted EBITDA ($m)
As reported 4,725.9 5,009.9 4,686.8 4,951.1
Retranslation effect 5.9 6.5 0.2 -
At constant currency 4,731.8 5,016.4 4,687.0 4,951.1
Leverage
As reported 1.6 2.0 1.7 2.2
At constant currency 1.6 2.0 1.7 2.2
This measure is used to provide an indication of the strength of the Group's
balance sheet and is widely used by investors and credit rating agencies. It
also forms part of the remuneration targets of the Group and has been
identified as one of the Group's key performance indicators.
Return on Investment ('RoI') None LTM adjusted operating profit divided by the LTM average of the sum of net
tangible and intangible fixed assets, plus net working capital but excluding
net debt and tax.
RoI is calculated excluding the impact of IFRS 16.
RoI is used by management to help inform capital allocation decisions within
the business and has been identified as one of the Group's key performance
indicators. It also forms part of the remuneration targets of the Group.
A reconciliation of Group RoI is provided below:
2025 2024
$m $m
Adjusted operating profit 2,652.6 2,758.8
IFRS 16 impact (77.1) (63.2)
Adjusted operating profit (excluding IFRS 16) 2,575.5 2,695.6
Average net assets 18,002.9 17,310.8
Return on investment 14% 16%
RoI for the businesses is calculated in the same way, but excludes goodwill
and intangible assets:
North America General Tool North America Specialty $m
$m
UK
$m
Adjusted segment operating profit (excluding IFRS 16)
2,051.6 1,156.2 62.7
Average net assets, excluding goodwill and intangibles
10,366.4 3,756.1 1,066.6
Return on investment 20% 31% 6%
Adjusted operating profit
Operating profit
Adjusted operating profit is operating profit before amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
First quarter
2025 2024
$m $m
Operating profit 641.8 688.3
Amortisation 28.1 28.7
Non-recurring costs associated with relisting:
- Staff costs 2.2 -
- Other operating costs 10.5 -
Adjusted operating profit 682.6 717.0
Adjusted profit before tax
Profit before tax
Adjusted profit before tax is profit before tax, amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
First quarter
2025 2024
$m $m
Profit before tax 511.6 544.4
Amortisation 28.1 28.7
Non-recurring costs associated with relisting:
- Staff costs 2.2 -
- Other operating costs 10.5 -
Adjusted profit before tax 552.4 573.1
Adjusted profit after tax
Profit after tax
Adjusted profit after tax is profit after tax before amortisation and
non-recurring costs associated with the move of the Group's primary listing to
the US.
First quarter
2025 2024
$m $m
Profit after tax 375.5 403.5
Amortisation 28.1 28.7
Non-recurring costs associated with relisting:
- Staff costs 2.2 -
- Other operating costs 10.5 -
Tax on adjusting items (8.2) (7.2)
Adjusted profit after tax 408.1 425.0
Adjusted earnings per share
Earnings per share
Adjusted earnings per share is earnings per share before and non-recurring
costs associated with the move of the Group's primary listing to the US.
First quarter
2025 2024
ȼ ȼ
Earnings per share (basic) 87.7 92.4
Amortisation 6.6 6.6
Non-recurring costs associated with relisting:
- Staff costs 0.5 -
- Other operating costs 2.4 -
Tax on adjusting items (1.9) (1.6)
Adjusted earnings per share (basic) 95.3 97.4
Adjusted segment EBITDA
Operating profit
Adjusted segment EBITDA is operating profit by segment before depreciation,
amortisation and non-recurring costs associated with the move of the Group's
primary listing to the US. Adjusted segment EBITDA is calculated excluding
the impact of
IFRS 16. A reconciliation of adjusted segment EBITDA to operating profit is
shown below:
First quarter
2025 2024
$m $m
Adjusted segment EBITDA
- North America - General Tool 870.7 900.2
- North America - Specialty 435.9 410.5
- UK 61.4 63.9
Impact of IFRS 16 73.0 67.4
Other central costs (165.1) (154.3)
Adjusted EBITDA 1,275.9 1,287.7
Non-recurring costs (12.7) -
EBITDA 1,263.2 1,287.7
Depreciation (593.3) (570.7)
Amortisation (28.1) (28.7)
Operating profit 641.8 688.3
Adjusted segment operating profit
Operating profit
Adjusted segment operating profit is operating profit by segment before
depreciation, amortisation and non-recurring costs associated with the move of
the Group's primary listing to the US. Adjusted segment EBITDA is calculated
excluding the impact of
IFRS 16. A reconciliation of adjusted segment EBITDA to operating profit is
shown below:
First quarter
2025 2024
$m $m
Adjusted segment operating profit
- North America - General Tool 519.5 561.3
- North America - Specialty 301.2 279.5
- UK 16.2 22.1
Impact of IFRS 16 20.5 17.1
Other central costs (174.8) (163.0)
Adjusted operating profit 682.6 717.0
Non-recurring costs (12.7) -
Amortisation (28.1) (28.7)
Operating profit 641.8 688.3
Free cash flow
Net cash generated from operating activities
Free cash flow is net cash generated from operating activities adjusted for
non-recurring costs less non-rental net property, plant and equipment
expenditure. Non-rental net property, plant and equipment expenditure
comprises payments for non-rental capital expenditure less disposal proceeds
received in relation to non-rental asset disposals.
2025 2024
$m $m
Net cash generated from operating activities 597.5 287.9
Non-recurring costs 15.0 -
Payments for non-rental property, plant and equipment
(112.2) (138.1)
Proceeds from disposal of non-rental property,
plant and equipment 13.4 11.3
Free cash flow 513.7 161.1
This measure shows the cash retained by the Group prior to non-recurring
costs, discretionary expenditure on acquisitions and returns to
shareholders.
Leverage
None
Leverage calculated at constant exchange rates uses the period end exchange
rate for the relevant period and is determined as net debt divided by last
12-month ('LTM') adjusted EBITDA.
2025 2024
Excluding IFRS 16 Including IFRS 16 Excluding IFRS 16 Including IFRS 16
Net debt ($m)
As reported and 7,425.3 10,267.6 8,032.5 10,761.0
at constant currency
Adjusted EBITDA ($m)
As reported 4,725.9 5,009.9 4,686.8 4,951.1
Retranslation effect 5.9 6.5 0.2 -
At constant currency 4,731.8 5,016.4 4,687.0 4,951.1
Leverage
As reported 1.6 2.0 1.7 2.2
At constant currency 1.6 2.0 1.7 2.2
This measure is used to provide an indication of the strength of the Group's
balance sheet and is widely used by investors and credit rating agencies. It
also forms part of the remuneration targets of the Group and has been
identified as one of the Group's key performance indicators.
Return on Investment ('RoI')
None
LTM adjusted operating profit divided by the LTM average of the sum of net
tangible and intangible fixed assets, plus net working capital but excluding
net debt and tax.
RoI is calculated excluding the impact of IFRS 16.
RoI is used by management to help inform capital allocation decisions within
the business and has been identified as one of the Group's key performance
indicators. It also forms part of the remuneration targets of the Group.
A reconciliation of Group RoI is provided below:
2025 2024
$m $m
Adjusted operating profit 2,652.6 2,758.8
IFRS 16 impact (77.1) (63.2)
Adjusted operating profit (excluding IFRS 16) 2,575.5 2,695.6
Average net assets 18,002.9 17,310.8
Return on investment 14% 16%
RoI for the businesses is calculated in the same way, but excludes goodwill
and intangible assets:
North America General Tool North America Specialty $m
$m
UK
$m
Adjusted segment operating profit (excluding IFRS 16)
2,051.6 1,156.2 62.7
Average net assets, excluding goodwill and intangibles
10,366.4 3,756.1 1,066.6
Return on investment 20% 31% 6%
Other terms used within this announcement include:
● Adjusted: adjusted results are results stated before non-recurring costs
associated with the move of the Group's primary listing to the US and the
amortisation of acquired intangibles. Reconciliations are shown above.
● Availability: represents the headroom on a given date under the terms of our
$4.75bn asset-backed senior bank facility, taking account of current
borrowings.
● Capital expenditure: represents additions to rental equipment and other
property, plant and equipment (excluding assets acquired through a business
combination).
● Cash conversion ratio: represents cash flow from operations before
non-recurring costs and changes in rental equipment as a percentage of
Adjusted EBITDA. Details are provided within the Review of Balance Sheet and
Cash Flow section.
● Dollar utilisation: dollar utilisation is trailing 12-month rental revenue
divided by average fleet size at original (or 'first') cost measured over a
12-month period. Dollar utilisation has been identified as one of the
Group's key performance indicators. Details are shown within the Review of
Balance Sheet and Cash Flow section.
● EBITDA and EBITDA margin: EBITDA is earnings before interest, tax,
depreciation and amortisation. A reconciliation of EBITDA to profit before
tax is shown on the income statement. EBITDA margin is calculated as EBITDA
divided by revenue. Progression in EBITDA margin is an important indicator
of the Group's performance and this has been identified as one of the Group's
key performance indicators.
● Fleet age: original cost weighted age of serialised rental assets.
Serialised rental assets constitute the substantial majority of our fleet.
● Fleet on rent: quantity measured at original cost of our rental fleet on
rent. Fleet on rent has been identified as one of the Group's key
performance indicators.
● Net debt: net debt is total borrowings (bank, bonds) and lease liabilities
less cash balances, as reported. This measure is used to provide an
indication of the Group's overall level of indebtedness and is widely used by
investors and credit rating agencies. An analysis of net debt is provided in
Note 13.
● Operating profit and operating profit margin: Operating profit is earnings
before interest and tax. A reconciliation of operating profit to profit
before tax is shown on the income statement. Operating profit margin is
calculated as operating profit divided by revenue. Progression in operating
profit margin is an important indicator of the Group's performance.
● Organic: organic measures comprise all locations, excluding locations arising
from a bolt-on acquisition completed after the start of the comparative
financial period.
● Rental only revenue: rental revenue excluding loss damage waiver,
environmental fees, erection and dismantling revenue and revenue from rental
equipment delivery and collection.
● Same-store: same-stores are those locations which were open at the start of
the comparative financial period.
● Segment profit: operating profit before amortisation and non-recurring costs
by segment.
● Suppressed availability: represents the amount on a given date that the asset
base exceeds the facility size under the terms of our $4.75bn asset-backed
senior bank facility.
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